Karim holds 1000 shares of ABC, which have appreciated 30% in value. He would like to continue holding the shares because they pay an attractive dividend. However, he believes that the shares do not have significant appreciation potential in the near-term. Which derivative strategy will allow him to maximize his income from the shares?

Answer rating: 100% (QA)

To maximize his income from the shares while continuing to hold them Karim can consider implementing a covered call strategy using options A covered c... View the full answer